RiskMetrics Policy Updates Suggest Increased Risk of Withhold/Against Vote Due to Poor Performance
RiskMetrics Group recently published its list of those companies that it considers to be “under performers” for purposes of its evaluation of directors. The present list consists of those companies that are in the bottom half of their respective four digit GICS (Global Industry Classification Group) industry group (Russell 3000 Companies only) measured by one and three-year stockholder returns. This list is much broader than in prior years when RiskMetrics only focused on the bottom five percent of performers within GICS industry groups measured by a weighing of four metrics.